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Comarco Reports Second Quarter Fiscal 2012 Financial Results
Sep 14, 2011 (06:09 PM EDT)


LAKE FOREST, Calif., Sept. 14, 2011 /PRNewswire/ -- Comarco, Inc. (OTC: CMRO), a leading provider of innovative mobile power solutions through its ChargeSource® line of multi-function universal mobile power products, today announced its financial results for the second quarter of fiscal 2012 ended July 31, 2011.  

Revenue for the second quarter of fiscal 2012 was $1.9 million compared to $12.8 million for the second quarter of fiscal 2011.  The revenue decline during the quarter resulted from the previously announced termination of our distribution agreement with Targus. The Company reported a net loss of $1.9 million, or $(0.26) per share, for the recent second quarter, which compares to a net loss of $0.6 million, or $(0.08) per share, for the second quarter of the prior fiscal year.  

"Our second quarter results were as anticipated and reflect the continued impact of our strategic decision to shift from the traditional tiered, indirect retail sales channel," said Tom Lanni, President and Chief Executive Officer of Comarco.  "Our current strategy includes direct-to-consumer sales of our newest generation power adapter which we plan to launch on our website later this year."

"Our gross margin was adversely affected by the write-down of excess inventory and other supply chain costs relating to purchase commitments made to support the Targus business.  Looking forward, we expect to return to gross profit with the introduction of direct-to-consumer sales through our website during fiscal 2013.  In addition to our new sales strategy, we have continued to reduce our operating expenses in the second quarter, which will be reflected in the second half of this fiscal year," concluded Mr. Lanni.

Six Months of Fiscal 2012 Financial Results

  • Revenue of $4.9 million, compared with $20.3 million for the same period of fiscal 2011
  • Gross loss of $0.1 million, compared with gross profit of $3.7 million for the comparable period last year
  • Net loss of $3.2 million, or $(0.43) per share, compared with a net loss of $1.3 million, or $(0.18) per share

Forward-Looking Statement Disclaimer  

This press release contains statements relating to our future plans and strategies that are based on our current beliefs and assumptions.  These statements constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "could," "may," "should," and similar expressions or variations of such words are intended to identify forward-looking statements, but are not deemed to represent an all-inclusive means of identifying forward-looking statements as denoted in this release. Additionally, statements concerning future matters are forward-looking statements.  

Although forward-looking statements in this release reflect the good faith judgment of our management, such statements are only based on facts and factors known by us as of the date of this release.  Consequently, forward-looking statements are inherently subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in or anticipated by the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, without limitation, those specifically addressed in the section entitled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended January 31, 2011, and in our other filings with the Securities and Exchange Commission. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release.  We undertake no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release, whether as a result of new information, future events or otherwise, except as required by law.

About Comarco

Based in Lake Forest, Calif., Comarco is a leading provider of universal mobile power products used to power and charge notebook computers, mobile phones, and many other rechargeable mobile devices.  The Company's Web sites can be found at www.comarco.com and www.chargesource.com.

COMARCO, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share data)



Three Months Ended

July 31,


Six Months Ended

July 31,


2011


2010


2011


2010

Revenue

$  1,926


$  12,783


$  4,876


$  20,297

Cost of revenue

2,232


10,645


5,006


16,557

Gross profit (loss)

(306)


2,138


(130)


3,740









Selling, general and administrative expenses

1,114


1,210


2,065


2,617

Engineering and support expenses

475


886


974


1,788


1,589


2,096


3,039


4,405









Operating income (loss)

(1,895)


42


(3,169)


(665)

Other loss, net

(13)


(23)


(2)


(42)

Income (loss) from continuing operations before income taxes

(1,908)


19


(3,171)


(707)

Income tax expense

2



2


Net income (loss) from continuing operations

(1,910)


19


(3,173)


(707)

Loss from discontinued operations, net of income taxes

(21)


(594)


(21)


(601)

Net loss

$  (1,931)


$  (575)


$  (3,194)


$  (1,308)

Basic and diluted loss per share:








   Net loss from continuing operations

$    (0.26)


$     —


$   (0.43)


$   (0.10)

   Net loss from discontinued operations


(0.08)



(0.08)


$  (0.26)


$  (0.08)


$  (0.43)


$  (0.18)









Weighted average common shares outstanding:








   Basic

7,344


7,327


7,344


7,327

   Diluted

7,344


7,327


7,344


7,327

Common shares outstanding

7,344


7,327


7,344


7,327




COMARCO, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)



July 31,


January 31,


2011


2011 (A)


(Unaudited)



ASSETS








Current Assets:




   Cash and cash equivalents

$  1,556


$  6,381

   Accounts receivable due from customers, net

2,091


3,550

   Accounts receivable due from suppliers, net

764


724

   Inventory, net

1,737


1,521

   Other current assets

360


165

       Total current assets

6,508


12,341

Property and equipment, net

197


420


$  6,705


$  12,761





LIABILITIES AND STOCKHOLDERS' EQUITY








Current Liabilities:




   Accounts payable

$  3,682


$  5,180

   Accrued liabilities

2,264


2,762

   Line of credit


1,000

       Total current liabilities

5,946


8,942

   Deferred rent

39


       Total liabilities

5,985


8,9742

Stockholders' equity

720


3,819


$  6,705


$  12,761


(A)  Derived from the audited consolidated financial statements as of January 31, 2011.



SOURCE Comarco, Inc.